RELIGARE ENT 2022-23 Annual Report Analysis

Fri, 31 Mar

RELIGARE ENT has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

RELIGARE ENT Income Statement Analysis

• Operating income during the year rose 45.1% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 73.8% in FY23 as against 12.2% in FY22.
• Depreciation charges increased by 5.1% and finance costs decreased by 14.6% YoY, respectively.
• Other income grew by 205.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 47.7% in FY22 to 67.8% in FY23.

RELIGARE ENT Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	32,236	46,765	45.1%
Other income	Rs m	1,649	5,043	205.8%
Total Revenues	Rs m	33,885	51,807	52.9%
Gross profit	Rs m	-3,923	34,516	NA
Depreciation	Rs m	534	561	5.1%
Interest	Rs m	7,503	6,411	-14.6%
Profit before tax	Rs m	-10,311	32,586	NA
Tax	Rs m	5,075	900	-82.3%
Profit after tax	Rs m	-15,385	31,686	NA
Gross profit margin	%	-12.2	73.8
Effective tax rate	%	-49.2	2.8
Net profit margin	%	-47.7	67.8

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RELIGARE ENT Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 26 billion as compared to Rs 44 billion in FY22, thereby witnessing an decrease of -41.1%.
• Long-term debt down at Rs 2 billion as compared to Rs 37 billion during FY22, a fall of 93.5%.
• Current assets fell 15% and stood at Rs 74 billion, while fixed assets rose 8% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 80 billion as against Rs 93 billion during FY22, thereby witnessing a fall of 14%.

RELIGARE ENT Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-9,867	20,554	NA
Current Liabilities	Rs m	43,860	25,839	-41.1
Long-term Debt	Rs m	37,397	2,446	-93.5
Total Liabilities	Rs m	93,078	80,356	-13.7
Current assets	Rs m	87,049	73,863	-15.1
Fixed Assets	Rs m	6,029	6,493	7.7
Total Assets	Rs m	93,078	80,356	-13.7

RELIGARE ENT Cash Flow Statement Analysis

• RELIGARE ENT's cash flow from operating activities (CFO) during FY23 stood at Rs 15 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -9 billion, an improvement of 36.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -21 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -15 billion from the Rs 15 billion net cash flows seen during FY22.

RELIGARE ENT Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	15,960	15,060	-5.6%
Cash Flow from Investing Activities	Rs m	-6,890	-9,388	-
Cash Flow from Financing Activities	Rs m	5,590	-20,788	-
Net Cash Flow	Rs m	14,660	-15,115	-

Current Valuations for RELIGARE ENT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 97.9, an improvement from the EPS of Rs -48.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 145.1, stands at 1.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 1.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	101.1	144.5
TTM Earnings per share	Rs	-48.3	97.9
Diluted earnings per share	Rs	-46.7	96.2
Price to Cash Flow	x	-2.9	1.5
TTM P/E ratio	x	-2.8	1.5
Price / Book Value ratio	x	-4.5	2.3
Market Cap	Rs m	44,075	46,908
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for RELIGARE ENT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.9x during FY23, from 2.0x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 6.1x during FY23, from -0.4x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 154.2% during FY23, from 155.9% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 169.6% during FY23, from -10.2% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 47.4% during FY23, from -8.5% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	2.0	2.9
Debtors’ Days	Days	209	137
Interest coverage	x	-0.4	6.1
Debt to equity ratio	x	-3.8	0.1
Return on assets	%	-8.5	47.4
Return on equity	%	155.9	154.2
Return on capital employed	%	-10.2	169.6

To see how RELIGARE ENT has performed over the last 5 years, please visit here.

RELIGARE ENT Share Price Performance

Over the last one year, RELIGARE ENT share price has moved up from Rs 130.2 to Rs 145.1, registering a gain of Rs 14.9 or around 11.4%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for RELIGARE ENT and quarterly results for RELIGARE ENT)